This paper studies the asset pricing implications of industrial pollution. A long‐short portfolio
constructed from firms with high versus low toxic emission intensity within an industry …

We adapt simple tools from computational linguistics to construct a new measure of political
risk faced by individual US firms: the share of their quarterly earnings conference calls that …

Using a news-based index of policy uncertainty, we document a strong negative relationship
between firm-level capital investment and the aggregate level of uncertainty associated with …

Abstract Models of political risk predict that increases in political uncertainty cause stock
prices to fall, especially for politically sensitive firms. We use the event of the Bo Xilai political …

We empirically analyze the pricing of political uncertainty, guided by a theoretical model of
government policy choice. To isolate political uncertainty, we exploit its variation around …

Using the news-based measure of Baker et al.[Baker SR, Bloom N, Davis SJ (2013)
Measuring economic policy uncertainty. Working paper, Stanford University, Stanford, CA] to …

We develop a general equilibrium model of government policy choice in which stock prices
respond to political news. The model implies that political uncertainty commands a risk …

We study how unexpected changes in uncertainty about fiscal policy affect economic activity.
First, we estimate tax and spending processes for the United States with time-varying …

We construct a text-based measure of uncertainty starting in 1890 using front-page articles
of the Wall Street Journal. News implied volatility (NVIX) peaks during stock market crashes …

Does macroeconomic uncertainty increase or decrease aggregate growth and asset prices?
To address this question, we decompose aggregate uncertainty into 'good'and 'bad'volatility …